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Individual behaviour in Australia's shadow economy: facts, empirical findings and some mysteries

Schneider, Friedrich; Braithwaite, Valerie; Reinhart, Monika


This paper attempts to explain the behaviour that motivates individuals to engage in the shadow economy. Results show that those who fear being caught by tax authorities are less likely to supply or purchase work in the shadow economy. Further, those who earn more money in the ‘official’ economy, work less in the shadow economy, but purchase more shadow economy work. The results of logistic regressions show that when working in the shadow economy is seen as socially acceptable, shadow economy...[Show more]

CollectionsANU Research Publications
Date published: 2001
Type: Working/Technical Paper


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